Tor

Tor is an encrypted anonymising network that makes it harder to intercept internet communications, or see where communications are coming from or going to.

In order to use the WikiLeaks public submission system as detailed above you can download the Tor Browser Bundle, which is a Firefox-like browser available for Windows, Mac OS X and GNU/Linux and pre-configured to connect using the anonymising system Tor.

Tails

If you are at high risk and you have the capacity to do so, you can also access the submission system through a secure operating system called Tails. Tails is an operating system launched from a USB stick or a DVD that aim to leaves no traces when the computer is shut down after use and automatically routes your internet traffic through Tor. Tails will require you to have either a USB stick or a DVD at least 4GB big and a laptop or desktop computer.

Tips

Our submission system works hard to preserve your anonymity, but we recommend you also take some of your own precautions. Please review these basic guidelines.

1. Contact us if you have specific problems

If you have a very large submission, or a submission with a complex format, or are a high-risk source, please contact us. In our experience it is always possible to find a custom solution for even the most seemingly difficult situations.

2. What computer to use

If the computer you are uploading from could subsequently be audited in an investigation, consider using a computer that is not easily tied to you. Technical users can also use Tails to help ensure you do not leave any records of your submission on the computer.

3. Do not talk about your submission to others

If you have any issues talk to WikiLeaks. We are the global experts in source protection – it is a complex field. Even those who mean well often do not have the experience or expertise to advise properly. This includes other media organisations.

After

1. Do not talk about your submission to others

If you have any issues talk to WikiLeaks. We are the global experts in source protection – it is a complex field. Even those who mean well often do not have the experience or expertise to advise properly. This includes other media organisations.

2. Act normal

If you are a high-risk source, avoid saying anything or doing anything after submitting which might promote suspicion. In particular, you should try to stick to your normal routine and behaviour.

3. Remove traces of your submission

If you are a high-risk source and the computer you prepared your submission on, or uploaded it from, could subsequently be audited in an investigation, we recommend that you format and dispose of the computer hard drive and any other storage media you used.

In particular, hard drives retain data after formatting which may be visible to a digital forensics team and flash media (USB sticks, memory cards and SSD drives) retain data even after a secure erasure. If you used flash media to store sensitive data, it is important to destroy the media.

If you do this and are a high-risk source you should make sure there are no traces of the clean-up, since such traces themselves may draw suspicion.

4. If you face legal action

If a legal action is brought against you as a result of your submission, there are organisations that may help you. The Courage Foundation is an international organisation dedicated to the protection of journalistic sources. You can find more details at https://www.couragefound.org.

Submit documents to WikiLeaks

WikiLeaks publishes documents of political or historical importance that are censored or otherwise suppressed. We specialise in strategic global publishing and large archives.

The following is the address of our secure site where you can anonymously upload your documents to WikiLeaks editors. You can only access this submissions system through Tor. (See our Tor tab for more information.) We also advise you to read our tips for sources before submitting.

wlupld3ptjvsgwqw.onion

Copy this address into your Tor browser. Advanced users, if they wish, can also add a further layer of encryption to their submission using our public PGP key.

If you cannot use Tor, or your submission is very large, or you have specific requirements, WikiLeaks provides several alternative methods. Contact us to discuss how to proceed.

United Nations Office of Internal Oversight Services (UN OIOS) 9 May 2005 report titled "Audit of Operations in Kosovo [AR2005-121-05]" relating to the Office of the United Nations High Commissioner for Refugees. The report runs to 12 printed pages.

Simple text version follows

UNITED NATIONS
Office of Internal Oversight Services
UNHCR Audit Service
Assignment AR2005/121/05 9 May 2006
Audit Report R06/R005
AUDIT OF UNHCR OPERATIONS IN KOSOVO
Auditors:
Nikolai Grigoriev
Girma Gina
-----------------------------------------------------------------------------------------
UNITED NATIONS NATIONS UNIES
Office of Internal Oversight Services
UNHCR Audit Service
AUDIT OF UNHCR OPERATIONS IN KOSOVO (AR2005/121/05)
EXECUTIVE SUMMARY
In December 2005, OIOS conducted an audit of UNHCR Operations in Kosovo. The audit
covered activities with a total expenditure of US$ 7.6 million in 2003 and 2004. A summary of
preliminary findings and recommendations was shared with the Chief of Mission in December
2005, on which comments were received by January 2006. A draft of this report was sent to the
Chief of Mission and the Director of the Bureau for Europe in February 2006, from whom
comments were received in April 2006 and are reflected as appropriate in the final report. The
Chief of Mission has accepted all of the audit recommendations made and is in the process of
implementing them.
Overall Assessment
� OIOS assessed the UNHCR Operation in Kosovo as average, it was adequately run but
although the majority of key controls were being applied, the application of certain important
controls lacked consistency or effectiveness. In order not to compromise the overall system of
internal control, timely corrective action by management is required.
Programme Management
� Of the five partners reviewed, reasonable assurance could be taken for four of them that
UNHCR funds were properly accounted for and disbursed in accordance with the Sub-Project
Agreements.
� For the American Refugee Committee (ARC), OIOS experienced difficulties in reconciling the
2004 SPMR to ARC's accounting data. Irregular adjustment entries were made between 2004
and 2005 leading to a potential recovery of at least US$ 20,300. Concern was also raised with
regard to ARC's procurement practices, which were non-compliant with UNHCR's IP
Procurement Guidelines. Positive action has already been taken by the Office of the Chief of
Mission (OCM) to improve ARC's compliance with UNHCR's Sub-Project Agreement
requirements, as well as to strengthen its internal controls over financial management and
procurement.
� For Developing Together, a local NGO delegated the responsibility of procuring materials;
OIOS suggested that consideration be given to UNHCR carrying out procurement directly. If
this is implemented, OIOS estimated that savings of about US$ 64,000 could be achieved over
a two-year period due to UNHCR's VAT exemption status. OCM is providing guidance on
cost-effective procurement practices and reviewing the possibility of taking over these
activities.
� In the Sub-Project Agreements, further efforts were required to properly define standards and
indicators. Without proper performance and impact indicators, the success of projects cannot be
-----------------------------------------------------------------------------------------
effectively measured. OCM is making an effort to review and adjust project documents with the
aim of enhancing their overall quality.
� OIOS assessed that project financial monitoring could be more effective with more in-depth
reviews and more detailed monitoring procedures. OCM has already started to re-focus and
strengthen its monitoring of operational activities.
Supply Management
� Limited procurement activities were carried-out; nonetheless it was found that there was no
clear division of responsibilities between the supply function and administration. In December
2005, OCM had centralised its supply function. OIOS was of the opinion that consideration be
given to centrally procuring fuel for implementing partners in order to achieve economies
estimated at US$ 60,000 over a two-year period. Implementation of the centralized UNHCR
and implementing partners' fuel supply would start as of 1 July 2006.
� There were a number of slow and possible obsolete items stored in the warehouse. For
example, OIOS found that there were over 35,000 blankets (valued at about US$ 100,000)
procured in 1999 and 2001 still in storage. With contingency planning levels at 10,000, OIOS
recommended that efforts be made to re-deploy some 25,000 of them (value US$ 75,000)
before their quality deteriorates. Up until now, OCM has dispatched some 10,000 blankets
with an estimated value of US$ 30,000 to UNHCR Serbia and Montenegro to strengthen its
contingency preparedness.
� Further efforts were required to strengthen internal controls over asset management;
discrepancies identified in the 2005 physical verification need to be reviewed and adjustment
entries made, forms assigning personal responsibility up-dated and decisions of the Local Asset
Management Board implemented more expeditiously.
Security and Safety
� UNHCR Kosovo was generally MOSS compliant, however the Security Plan was still in draft
pending input from field offices, and its final review and approval. Checking security at staff
residencies for MORSS compliance was not performed systematically. Corrective actions have
been taken promptly by OCM.
Administration
� In the areas of administration and finance, OCM, Pristina generally complied with UNHCR's
regulations, rules, policies and procedures and controls were operating effectively during the
period under review. Improvement and strengthening of internal controls were required over
accuracy and completeness of supporting documents, as well as finalizing the results of the
medical facilities survey.
MSRP Implementation
� MSRP went live in UNHCR Pristina in April 2005. A number of issues with regard to MSRP
implementation were identified, which need to be addressed centrally at Headquarters.
May 2006
-----------------------------------------------------------------------------------------
TABLE OF CONTENTS
CHAPTER Paragraphs
I. INTRODUCTION 1-5
II. AUDIT OBJECTIVES 6
III. AUDIT SCOPE AND METHODOLOGY 7-9
IV. AUDIT FINDINGS AND RECOMMENDATIONS
A. Review of Implementing Partners 10-15
B. Other Programme Issues 16-17
C. Supply Management 18-22
D. Security and Safety 23
E. Administration 24-26
V. ACKNOWLEDGEMENT 27
-----------------------------------------------------------------------------------------
I. INTRODUCTION
1. From 21 November to 6 December 2005, OIOS conducted an audit of UNHCR's
Operations in Kosovo. The audit was conducted in accordance with the International Standards
for the Professional Practice of Internal Auditing. OIOS reviewed the activities of the UNHCR
Office of the Chief of Mission in Pristina, its field offices in Gjilan and Mitrovice and the
offices of five of its implementing partners.
2. OIOS conducted the last internal audit of UNHCR Kosovo in August 2002. The audit
assessed the UNHCR operation in Kosovo as average. Critical recommendations dealt with
implementing partners NRC (car pool scheme), ARC (procurement of construction materials
and VAT payments), project financial and performance monitoring and supply management.
OIOS' recommendations were adequately dealt with.
3. UNHCR's main objectives in Kosovo are to contribute towards the creation of
conditions preventing further displacement of minorities and to facilitate the voluntary return
and sustainable reintegration of minority IDPs and refugees in their place of origin, as well as
to identify and facilitate durable solutions for refugees from Croatia and Bosnia &
Herzegovina.
4. The beneficiary populations of concern to UNHCR in 2003 and 2004 in Kosovo were as
follows:
Population 2003 2004
Minority returnees 5,000-10,000 5,000
Croatian Serb refugees displaced from 450 389
Croatia in 1995 and stranded in Kosovo at
the end of 1999 war
FYR of Macedonia refugees 1,500 860
IDPs from Southern Serbia 1,000 5,000
Local Residents at risk 85,000 85,000
IDPs within Kosovo 32,500 22,000
March 2004 IDPs - 4,000
TOTAL Some 130,000 122,000
5. The findings and recommendations contained in this report have been discussed with
the officials responsible for the audited activities during the exit conference held on 6
December 2005. A summary of preliminary findings and recommendations was shared with
the Chief of Mission in December 2005, on which comments were received in January 2006. A
draft of this report was sent to the Chief of Mission and the Director of the Bureau for Europe
in February 2006, on which comments were received in April 2006 and reflected as appropriate
in the final report. The Chief of Mission has accepted all of the audit recommendations made
and is in the process of implementing them.
-----------------------------------------------------------------------------------------
2
II. AUDIT OBJECTIVES
6. The main objectives of the audit were to evaluate the adequacy and effectiveness of
controls to ensure:
� Reliability and integrity of financial and operational information
� Effectiveness and efficiency of operations
� Safeguarding of assets
� Compliance with regulations and rules, Letters of Instruction and Sub-Project
Agreements
III. AUDIT SCOPE AND METHODOLOGY
7. The audit focused on 2003 and 2004 programme activities under projects
03/AB/YUG/CM/271 and 04/AB/SCG/CM/271 with a combined expenditure of US$ 9.6
million. Our review concentrated on the activities implemented by International Catholic
Migration Commission (ICMC) � expenditure of US$ 1.6 million; GOAL Ireland/Developing
Together � expenditure of US$ 1.1 million; American Refugee Committee (ARC) �
expenditure of US$ 0.7 million, Norwegian Church Aid (NCA) � expenditure of US$ 0.6
million; and Civil Rights Project, SCG � expenditure of US$ 0.2 million. OIOS also reviewed
activities directly implemented by UNHCR with expenditure of US$ 1.1 million.
8. The audit reviewed the administration of the Office of the Chief of Mission in Pristina
and field offices in Gjilan and Mitrovice with administrative budgets totalling US$ 2.3 million
for 2003 and 2004 and assets with an acquisition value of US$ 7.8 million and a current value
of US$ 0.9 million. As of December 2005, the number of personnel working for the UNHCR
Operation in Kosovo was 92. This included staff on regular posts and United Nations
Volunteers.
9. The audit activities included a review and assessment of internal control systems,
interviews with staff, analysis of applicable data and a review of the available documents and
other relevant records. OIOS also included a review of MSRP field roll-out implementation to
assess the level of success of the project as well as to identify any problems encountered.
IV. AUDIT FINDINGS AND RECOMMENDATIONS
A. Review of Implementing Partners
10. Of the five partners reviewed, reasonable assurance could be taken for four of them that
UNHCR funds were properly accounted for and disbursed in accordance with the Sub-Project
Agreements. For ARC, OIOS experienced difficulties in reconciling the SPMR to the accounting
data and found that procurement practices were neither satisfactory nor in compliance with
UNHCR's IP Procurement Guidelines. Of the other partners reviewed, OIOS assessed that
internal controls were generally in place and operating effectively during the period under
-----------------------------------------------------------------------------------------
3
review. OIOS however identified certain areas where further improvements are required.
11. Audit certificates for 2003 and 2004 sub-projects were available for all partners and
unqualified opinions were expressed.
(a) American Refugee Committee
12. The summary expenditure statement generated from ARC's accounting system did not
agree with the final SPMR submitted to UNHCR. OIOS identified that ARC incorrectly
charged non-UNHCR expenses of at least 12,157 (US$ 15,100) to the 2004 sub-project
inflating the overall 2004 expenditure. This was subsequently corrected in 2005, but the
resulting unspent balance for 2004 was not refunded to UNHCR. Moreover, ARC provided
reports, which included double counting of project expenditure, which differed from the reports
of the Gjilan field office. This resulted in an overcharge to UNHCR of 4,182 (US$ 5,200).
OIOS recommended that the adjusting entries be reviewed and analysed, as well as the double
counting of expenditure to determine the true amount involved, and if appropriate initiate a
recovery of US$ 20,300 (US$ 15,100 and US$ 5,200). OCM is in the process of reviewing the
reconciliation of amounts erroneously charged. OCM has also requested ARC to provide the
appropriate supporting documentation. The Chief of Mission and Senior Programme Officer
met with ARC Management in March 2006, to discuss ARC's compliance with financial and
accountability clauses as stipulated in the Sub-Project Agreements. This meeting was held as a
result of recent sudden significant management changes in ARC: particularly the
departure/resignation of the Director and Programme Manager for the Lead Agency program.
ARC agreed to seriously look into internal financial management issues and to reimburse any
amount wrongly charged to UNHCR. OIOS is pleased to note that positive action has been
taken and will maintain the recommendation until the review is completed, for which OCM has
a target date of 31 July 2006.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
ensure that the new management of ARC finalize the
reconciliation of the 2004 expenditures recorded in the SPMR
with ARC's accounting system. Supporting documents should
be provided to UNHCR OCM Pristina. If appropriate,
UNHCR should recover any erroneous amounts charged
estimated at US$ 20,300 (Rec. 01).
13. OIOS reviewed a sample of procurement cases totalling 13,358 (some US$ 16,600) in
2004 involving the same supplier Toni Impex. OIOS was concerned as the bids accepted from
Toni Impex matched the budgeted amounts exactly. Of the 14 cases reviewed, the same three
companies participated in the bidding process, and in all cases Tony Impex won the bid. The
competing companies did not appear on the list of suppliers (roster) provided to OIOS by ARC.
OCM took note of OIOS' concerns with regard to the weaknesses in ARC's procurement
procedures. A procurement workshop, initially planned for March, would be held in May 2006.
As part of the 2005 external auditing exercise, UNHCR had envisaged a comprehensive and in-
depth audit of ARC's accounts to be undertaken by an external audit firm. Furthermore, OCM
would undertake ad-hoc verification visits to ARC. OIOS is pleased to note the action taken by
OCM to both improve procurement activities conducted by partners on behalf of UNHCR as
well as to improve the monitoring and oversight of these delegated activities. OIOS will
-----------------------------------------------------------------------------------------
4
continue to monitor the recommendation for which OCM has set the target date for
implementation is 31 July 2006.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
ensure the procurement workshop goes ahead as planned and
sufficient guidance and support is provided to partners
delegated responsibility to conduct procurement on behalf of
UNHCR (Rec.02).
(b) Norwegian Church Aid
14. A number of provisions of the Sub-Project Agreement entered into with NCA in 2004
were not followed. OIOS reviewed a Community Development project "Multiethnic
playground in Dy Korriku" and found that procurement was not undertaken in accordance with
the UNHCR IP Procurement Guidelines. OCM stated they would remind NCA that any action,
which is not part of the standard procedure be documented and prior approval for such actions
obtained from UNHCR. Monthly and quarterly reports on Access to Public Services produced
in 2004 were superficial and in many cases did not offer practical solutions to address the
problems of the affected population. OCM replied that during 2005 it had proposed corrective
measures including the mandatory incorporation of beneficiary data analysed by gender and
age, the increasing use of baseline data and the adoption of a more analytical approach. As the
number of reports required by UNHCR had been reduced by late 2005, quality was expected to
improve.
(c) GOAL Ireland/Developing Together
15. In 2005 GOAL Ireland has handed over the implementation of this project to a local
NGO " Developing Together (DT)". DT has a budgeted amount of 169,605 (US$ 212,000)
under Individual and Family support, which is largely for the procurement of construction
material under fixed price agreements. OIOS suggested that consideration be given to UNHCR
to carry out procurement directly. UNHCR is exempt from VAT, which is imposed at 15 per
cent on the purchases handled by DT. OIOS estimates that savings of some 25,400 (US$
31,700) could have been achieved on an annual basis. OCM indicated that in early 2006
UNHCR Pristina participated in the joint UNHCR/DT Committee of bids' opening session.
Following DT's pre-selection process, UNHCR Pristina had actively participated in field visits
to short-listed companies to check suppliers' liability and accuracy of provided offers.
Concerning the VAT exemption procedure, UNHCR Pristina was in the process of assessing
DT's claim that it had been exempted from paying VAT. OIOS takes note of the positive action
taken to assist DT in its procurement procedures and practices. OIOS will monitor this
recommendation for which OCM has set the target date for implementation is 30 June 2006.
-----------------------------------------------------------------------------------------
5
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
provide guidance to Developing Together to better ensure they
adopt cost-effective procurement practices. OCM should
obtain assurance of the possibility for DT, a local NGO, to
apply for tax-exempt status. If this is not possible,
consideration should be given to taking over the purchasing of
construction materials to secure potential savings of US$
64,000 over a two year period through VAT exemptions (Rec.
03).
B. Other Programme Issues
16. In the Sub-Project Agreements with partners, standards and indicators were not properly
defined. Without proper performance and impact indicators, the success of projects cannot be
effectively measured. OIOS noted that although the "Number of Beneficiaries" and "Percentage
Increase" indicators were included in the document, no actual numbers or percentages were
given to allow planned outputs against the actual results to be measured. OIOS reviewed the
changes introduced in 2005 with OCM and implementing partners and suggested that when
exact figures cannot be projected, maximum and minimum figures be stated. OCM stated that
during 2005-2006, it had made an enormous effort to review and adjust project documents with
the view to enhancing their overall quality. When possible, actual numbers, percentages and
benchmarks had been incorporated.
17. OIOS assessed that project financial monitoring could be more effective with more in-
depth reviews conducted and more detailed monitoring procedures established. For example, in
2003 and 2004 financial monitoring visits to Implementing Partners were performed only once
a year. In OIOS' opinion, they were not sufficiently in-depth, and resulted in only insignificant
errors being highlighted. There was a lack of exchange of information between Field Offices
and OCM, which should have taken place before the financial monitoring visit. OCM has
started to re-focus and strengthen its monitoring of operational activities. UNHCR finalized
and attached to all 2006 Sub-Project Agreements a "Joint UNHCR-Implementing Partner
2006 Work-Plan for Enhanced Financial Monitoring and Control." OCM would reinforce the
staff involved in financial monitoring on-site reviews by including personnel from
Administration and Logistics.
C. Supply Management
18. Procurement of the OCM totalled 1.1 million (US$ 1.4 million) in 2003-2004. OIOS
found that there were no clear division of responsibilities between the supply function and
administration. Procurement plans were not prepared and items such as stationery were
purchased on a case-by-case basis rather than entering into a frame agreement. While OIOS
appreciates the staffing constraints, as a UNV in the Supply Section left the office in 2005
increasing the workload of the Supply Officer and a national Logistics Assistant, efforts are
required to initiate proper systems and procedures to ensure cost-effective purchasing. OCM
has completely centralized procurement activities within the Supply Unit, with only
Administration and Programme Units now only responsible for the requisition process. Also in
February 2006, OCM signed a frame agreement for the supply of stationery.
-----------------------------------------------------------------------------------------
6
19. In Kosovo, OCM procured fuel for its requirements; however, implementing partners
had entered into separate contracts. The budgeted figure for these separate arrangements, which
included VAT, amounted to 84,300 (US$ 104,300) in 2005. In OIOS' opinion, by combining
the two procurements, economies of scale could be achieved, as it would enable partners to
obtain fuel net of VAT, which is 15 per cent of the purchase price. OIOS estimated potential
savings of 25,000 (US$ 31,000) over a two-year period. OCM stated that the possibility of
centralizing fuel procurement is being reviewed in order to identify the best solution. Upon
finalization of this phase, OCM would consider the actual implementation in line with similar
practices currently in place in Serbia and Montenegro: issuing fuel vouchers to all
implementing partners for fuel supply at the central UNHCR-contracted fuelling station(s).
OIOS is again pleased at the positive action taken and will monitor this recommendation for
which OCM has set the target date for implementation is 1 July 2006.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
centralize fuel purchases of the OCM and implementing
partners and determine a feasible and cost-effective solution
with current or potential suppliers in order to achieve cost
savings amounting to some US$ 31,000 over a two-year period
(Rec.04).
20. OIOS' review of warehousing and stock management procedures found that systems
were in place and operating effectively during the period under review. OIOS noted, however,
that there were a number of slow moving items. For example there were over 35,000 blankets
(valued at US$ 108,000) procured between 1999 and 2001 still in stock, as well as nearly
200,000 sanitary napkins (valued at US$ 35,000) procured in 1999. Action was required to
review the stock in the warehouse for possible obsolescence and excessive levels. Moreover
with these types of goods there is a risk that they could deteriorate in storage. According to
OCM, contingency planning arrangements in case of crisis should cover 10,000 persons. On the
basis of OIOS' recommendation, OCM immediately dispatched 9,900 blankets with an
estimated value of US$ 30,000 to UNHCR Serbia and Montenegro to strengthen its
contingency preparedness. Following discussions with Headquarters as well as the offices in
the region, with particular consideration to contingency planning, it has been concluded that
the number of blankets available in stock in Kosovo can not be decreased any further at this
stage. A significant amount of various other non-food items, such as coats, garbage bags,
sanitary napkins and other items, have already been distributed to UNHCR field offices for
onward distribution to persons of concern. OIOS appreciates the efforts made to re-deploy and
distribute excess stock. OIOS would caution OCM against the continued storage of blankets
(already between five to seven years old). Continued storage of these items in the medium to
long term should not be an option as there is a risk that they will slowly deteriorate. An action
plan should be developed on how they could be used effectively.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should,
in consultation with the Supply Management Service, proceed
with the implementation of the Plan of Action to reduce
stocks. A definite decision should be made on the contingency
planning numbers (Rec. 05).
-----------------------------------------------------------------------------------------
7
21. OIOS appreciates that a physical inventory of assets (in the custody of implementing
partners) was done in 2005, but in the years prior to this, limited work had been carried out
with no physical inventories performed in 2003 and 2004. The lack of systematic procedures to
account for assets resulted in discrepancies between Right-of-Use (RoU) agreements and the
actual situation. For example, 23 buses, which were sold to UNMIK in 2004, were still listed as
in the custody of UNHCR's partner DRC as of September 2005. On the other hand, 72 items
had to be added to the 195 items, which were in the custody of DRC in accordance with the
RoU agreement. The forms assigning personal responsibility for attractive items were not up-
to-date. OCM indicated that discrepancies identified during the 2005 inventory would be
investigated and cleared following the 2005 SPMR verification exercise and closure of the sub-
projects. OIOS is pleased to note the action taken and will monitor this recommendation for
which OCM has set the target date for implementation is 30 June 2006.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
finalize the physical inventory of assets and follow-up and
investigate where appropriate any differences between the
physical count and the asset management records with the
records subsequently updated (Rec. 06).
22. The Local Asset Management Board (LAMB) met four times in 2004. The procedures
adopted were reviewed and found to be reasonable. OIOS noted several delays in resolving and
settling cases dating as far back as 2003. The Programme Section could not confirm whether
there had been a year-end deduction from two partners ARC and MCI for stolen vehicles
amounting to US$ 11,142. Several delays were also noted in obtaining HAMB decisions. For
example, because of the delay experienced from September 2003 to April 2004, UNDP, which
agreed to procure some equipment, could afford only part of it and paid only US$ 25,001 out of
the previously agreed amount of US$ 64,945. OCM was aware of the outstanding
reimbursements by implementing partners. The Supply Chain Unit had already contacted the
HAMB Secretary for updates on pending LAMB cases. As no reply had been received, OCM
stated they would send a memorandum to HAMB on the subject. OCM was confident that the
pending reimbursements from the Implementing Partners would take place at the latest by the
end of September 2006. OIOS notes the action taken and will monitor the recommendation for
which OCM has set the target date for implementation is 30 September 2006.
Recommendation:
The UNHCR Office of the Chief of Mission, Pristina should
ensure outstanding cases of non-reimbursement from the
implementing partners amounting to some US$ 11,000 are
settled. OCM should also update the file of pending cases to be
submitted to the Headquarters Asset Management Board (Rec.
07).
D. Security and Safety
23. In OIOS' discussions with OCM, it was determined that UNHCR Kosovo was generally
MOSS compliant. The latest Mission-Wide Security Plan for Kosovo was finalized and
approved in May 2005. However, the UNHCR Kosovo Security Plan was in draft form pending
-----------------------------------------------------------------------------------------
8
input from field offices, review and approval. Some items, like one GPS unit per field office
and trauma kits were requested through the Administration Section in 2004 but had not been
procured. The checking of security at staff residencies for MORSS compliance was not
performed systematically. Moreover, the visit to the warehouse revealed that none of the 16
rub-halls were equipped with fire extinguishers. OCM stated that Security Plans had been
finalized for each field office and they had been issued to staff in those locations. Also, an
assessment had been conducted for staff residences, and all field offices have a GPS handset,
but trauma kits would not be procured until the appropriate training had been provided.
E. Administration
24. In the areas of administration and finance, the Office of the Chief of Mission generally
complied with UNHCR's regulations, rules, policies and procedures and controls were
operating effectively during the period under review. However, from our review of a sample of
vouchers, payments were not always properly supported by the relevant documents to assure
the accuracy of the payments made. OCM stated it would fully comply with OIOS'
recommendation to reinforce controls over the accuracy and completeness of supporting
documents.
25. MSRP went live in Pristina in April 2005. A number of issues with regard to MSRP
implementation were identified, which needed to be addressed centrally at Headquarters.
26. In the area of MIP, in 2003 and 2004, a list of hospitals, physicians and pharmacies, as
well as the list of typical services and prices did not exist. In 2005, a survey was performed but
its results were not finalized and approved. The list of medical institutions, as well as the price
list were not signed and dated. OCM indicated that action had been taken on the
recommendation and the survey results had been approved and duly signed.
V. ACKNOWLEDGEMENT
27. I wish to express my appreciation for the assistance and cooperation extended to the
auditors by the staff of UNHCR and its implementing partners in Kosovo.
Eleanor T. Burns, Acting Chief
UNHCR Audit Service
Office of Internal Oversight Services
-----------------------------------------------------------------------------------------